EDUCARE: International Journal for Educational Studies, 6(1) August 2013 RAMLEE MUSTAPHA Transforming Education toward K-Economy in Malaysia ABSTRACT: To advance Malaysia into the forefront of knowledge, investment in human capital is critical, as the K-economy demands creative, innovative, and knowledge human resources. Malaysians demand a better work-life balance and opportunities for career enhancement, social mobility, and self-development. In addition, Malaysia needs to enhance its social capital and community capacity by reinforcing social cohesion and reducing social exclusion. Thus, the purpose of this article is to review critical elements that are needed to transform Malaysia into Knowledge- based society. Promoting and upholding the universal values of multiculturalism, human rights, and zero tolerance to corruption in public and private sectors is absolutely crucial. This is a first step toward achieving true liberty and democracy that may spur an environment suitable for innovative culture to flourish. To support K-economy, schools and universities should be equipped with broadband and seamless internet connection. To date, however, most rural schools in Malaysia have problem with the Internet access. Innovation in pedagogies and curriculum development is required in order to assist teachers in schools to make significant improvements. There are complains about the lack of high-order thinking, English proficiency, cross disciplinary skills, and critical and problem-solving skills among teachers and students. For the innovation culture to flourish, granting flexibility and autonomy is a way of moving forward. In sum, Malaysia needs a strong framework or a roadmap for producing adequate number of world renowned scientists and scholars in order to sustain the knowledge economy. KEY WORDS: K-economy, higher skilled and innovative workforce, education and social systems, transformative and innovative leadership, and Malaysians. INTRODUCTION developing talented, relevant, skillful, and The wealth of Asia will triple in 2015 to innovative human resources in Malaysia. USD 15.8 trillion (Loh, 2011:10). China and Education continues to play a vital role in India are forecasted to contribute over 40% of developing and transforming Malaysia for the global GDP (Gross Domestic Product) in 2011 next decade. and 2012. ASEAN (Association of South East Government Transformation Program Asian Nations)’s GDP is expected to grow at (GTP) and Economic Transformation Program annual rate of 4.8% in 2012 and 5.4% in 2013 (ETP) were launched in 2010 to achieve the (Kok, 2011:3). high-income status. With the slogan 1Malaysia: As one of the dynamic countries in Asia, People First, Performance Now − the government Malaysia should maintain its economic promised to make fundamental changes to competitiveness by transforming itself. deliver significant results fast (i.e. performance Malaysia’s transformation is underway. The now) and to ensure every Malaysian will enjoy aspiration to stand equal with other developed the fruits of the nation’s development and nations by 2020 and to become a stalwart live in an inclusive and diverse society where of education hub, especially in the Asian they consider themselves, first and foremost, region, has made Malaysia one of the vibrant a Malaysian (i.e. 1Malaysia). The ETP builds countries in Asia. upon the 10th Malaysia Plan (2011-2015) which The nation’s vibrancy lies in its human focuses on the 12 National Key Economic capital and the strength of its workforce is Areas (NKEAs). dependent on the quality of its education. The four largest NKEAs (Oil, Gas, and Thus, education is an important catalyst in Energy; Financial Services; Palm Oil; and Prof. Dr. Ramlee Mustapha is a Lecturer at the Faculty of Technical and Vocational Education UPSI (Sultan Idris University of Education), Tanjong Malim, Perak Darul Ridzuan, Malaysia. The author can be reached at: [email protected] 1 RAMLEE MUSTAPHA, Transforming Education Wholesale and Retail) are projected to economic operations. In fact, knowledge is generate over 60 percent of the future GNI becoming an increasingly important factor of (Gross National Income) growth. ETP was production, more important, some analysts designed to transform Malaysia into a high- would argue, than land, labor, and capital income economy with a GNI of MYR 1.7 (Drucker, 1990 and 1993). What this implies is trillion (USD 0.53 trillion) in 2020 compared that the knowledge workers are very much in to MYR 660 billion (USD 206 billion) in demand. 2009. This means that the GNI per capita In the Malaysian context, restructuring will have to rise from MYR 23,700 (USD of the economy has led to a change in the 7,406) in 2009 to MYR 48,000 (USD 15,000) demand and supply of human resources and by 2020 (http://etp.pemandu.gov.my/High_ this has become a critical issue. As the demand Income_Economy_-@-About_The_GNI. for professional and skilled workers increases, aspx, 9/10/2012). This level of GNI per capita there is a corresponding shortage in the supply would correspond to that of a high-income of such workers. Through the education and economy as currently defined by the World training system, various policies and strategies Bank. have been implemented to ensure an increasing However, the recent the USA (United supply of educated, skilled, and innovative Sates of America) and Eurozone economic labor force in line with the key thrust of crises have significant impact on Malaysia’s the Ninth and Tenth Malaysia Plans – the economic vibrancy. The vicious circle of development of human capital. K-economy raising debts and falling growth has spread will significantly reduce the need for low globally like “mad cow” disease. On the skilled foreign labor in Malaysia. finance front, Malaysia should expect a Malaysia, with an estimated per capita shrinking foreign capital inflow as Western GNP (Gross National Product) of USD 8,000, funds seek “safe havens” of their own is a significant socio-economic force in the countries during the uncertain economic Southeast Asian region. Traditionally, the period (Khor, 2012:25). Malaysia may need economy of Malaysia was based on its natural to rely more on domestic demand and capital. resources. During the 1980s, however, the There is a growing realization that the global government recognized the need for a balance economy is in jeopardy. An expected deep between resource-based and technology-based recession in global economy could cause industries, and started to focus on technology emerging economies like Malaysia a bumpy and service industries. In 1991, the nation’s ride ahead. Vision 2020 was launched (Mohamad, 1991). The Vision 2020 is a 30-year plan to “push” ECONOMIC DEVELOPMENT AND Malaysia to obtain a developed nation status VISION 2020 IN MALAYSIA by the year 2020 (Mustapha et al., 2008). Vision 2020 has charted the Malaysia’s Malaysia struggled economically during dream to become a developed nation. The the 1997-1998 Asian financial crisis and country was striving toward attaining that applied several valuable lessons to its economic goal by shifting its economic activities, management strategies that contributed to from production and exports of primary the economy’s resilience to the 2008-2009 commodities to manufacturing; and currently global financial crisis. GDP (Gross Domestic on more capital-intensive, high-technology, Product) contracted 1.7% in 2009 compared to and knowledge-based industries − has resulted 4.6% growth in 2008, but has since rebounded in a structural transformation of the Malaysian and was expected to be around 7% in 2010 economy for the past several decades. (http://www.traveldocs.com/my/economy. Malaysia’s Multimedia Super Corridor htm, 9/10/2012). (MSC) has provided opportunities for Recently, Malaysia claims to enter the era increased R&D (Research & Development) of innovation-led economy. Najib Razak, the and integration of advanced information current Prime Minister of Malaysia, says that and communication technologies (ICT) into innovation is the “key mechanism” to propel 2 EDUCARE: International Journal for Educational Studies, 6(1) August 2013 Table 1: Number of Patents among Selected Asian Countries Country Industrial Design Trade Mark Patent R&D as % GDP China 141,601 389,115 93,706 1.4 Hong Kong 3,035 18,408 4,001 0.8 Japan 29,382 97,525 176,950 3.3 Malaysia 1,483 27,847 2,086 0.6 Singapore 1,781 17,737 6,286 2.2 Taiwan n.a. n.a. n.a. 2.3 South Korea 39,858 62,443 83,523 3.2 Source: WIPI (2010). Malaysia forward (cited in Kandasamy, 2010). In addition, several studies have shown that Efforts have been made to churn out more university students in Malaysia are lacking innovative human capital such as MyBrain of innovative skills (Quah et al., 2009). Table 15. “MyBrain 15” is an ambitious program 1 shows regional comparison indicates that to produce 60,000 Malaysian PhD holders Malaysian registered patents are quite low, due by 2023 in order to boost K-economy. In to the smaller number of patents granted. academia, National Council of Professors was established in 2010 to fortify academic GLOBALIZATION AND K-ECONOMY visibility in Malaysian Higher Education The 21st century is an era full of challenges. Institutions (HEIs). However, “intellectual In developed countries, innovations are vacuum” is entrenched due to the reservation happening at accelerated pace and in large of the silence majority of the Malaysian scale. The world is becoming “smaller” and intellectuals to offer public comments, “flatter” in the sense that people can access especially if the comments were not in favor to to information easier and can participate the ruling elites in fear of retribution. in collaborative works across the nations Despite the laborious effort to churn out regardless of their nationalities. The term more knowledge workers, the figure remains low. Malaysia only has 25% of high-skilled “globalization” has many definitions. In fact, workers as compared to 49% in Singapore, there is no precise definition and its usage 33% in Taiwan, and 35% in South Korea depends on the context it is used (Khonder, (OECD, 1998 and 2011).